Eaton (ETN) closed the most recent trading day at $277.83, moving +0.11% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.79%. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq gained 0.64%.
Prior to today's trading, shares of the power management company had lost 5.48% over the past month. This has was narrower than the Industrial Products sector's loss of 8.23% and lagged the S&P 500's loss of 3.56% in that time.
Investors will be eagerly watching for the performance of Eaton in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.70, reflecting a 12.5% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.27 billion, indicating a 5.46% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.04 per share and revenue of $26.74 billion, which would represent changes of +11.48% and +7.48%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Eaton. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. At present, Eaton boasts a Zacks Rank of #3 (Hold).
Investors should also note Eaton's current valuation metrics, including its Forward P/E ratio of 23.05. For comparison, its industry has an average Forward P/E of 17.95, which means Eaton is trading at a premium to the group.
Meanwhile, ETN's PEG ratio is currently 2.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Manufacturing - Electronics industry had an average PEG ratio of 1.68.
The Manufacturing - Electronics industry is part of the Industrial Products sector. Currently, this industry holds a Zacks Industry Rank of 55, positioning it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Eaton Corporation, PLC (ETN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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